
c ° P y i NIFORM SYSTEM OF ACCOUNTS 


FOR 




TELEPHONE COMPANIES 


CLASS C 

PRESCRIBED BY THE 

INTERSTATE COMMERCE COMMISSION 

IN ACCORDANCE WITH SECTION 20 OF THE 
ACT TO REGULATE COMMERCE 


ISSUE OF 1915 

Effective on January 1,1915 



















UNIFORM SYSTEM OF ACCOUNTS 


FOR 

TELEPHONE COMPANIES 


< 'I ,ASS O 


PRESCRIBED BY THE 

* INTERSTATE COMMERCE COMMISSION 

*4 

IN ACCORDANCE WITH SECTION 20 OF THE 
ACT TO REGULATE COMMERCE 


ISSUE OF 1915 

Effective on January 1, 1915 



WASHINGTON 

GOVERNMENT PRINTING OFFICE 
1914 








THE INTERSTATE COMMERCE COMMISSION. 


James S. Harlan, of Illinois. 

Judson C. Clements, of Georgia. 

Edgar E. Clark, of Iowa. 

Charles C. McChord, of Kentucky. 

Balthasar H. Meyer, of Wisconsin. 

Henry C. Hall, of Colorado. 

Winthrop M. Daniels, of New Jersey. 

George B. McGinty, Secretary. 
( 2 ) 


0 . »Ft). 

DEC « 1914 




% 

* 

N 

& 

] 

CONTENTS. 


Order of the Commission. 

Introductory letter. 

General instructions: 

Telephone companies divided into four classes.. 

Classifications of accounts. 

Separation of exchange and toll systems. 

Balance sheet defined. 

Plant and equipment accounts defined. 

Income accounts defined. 

Operating revenues defined. 

Operating expenses defined. 

Cost of plant and equipment. 

Plant and equipment in service January 1, 1915 

New construction. 

Reconstruction. 

Plant and equipment retired. 

Repairs. 

Cost of repairs. 

Depreciation. 

List of accounts: 

* Balance-sheet accounts. 

Plant and equipment accounts. 

Income accounts. 

Operating revenue accounts. 

Operating expense accounts. 

Text of accounts: 

Balance-sheet accounts. 

Plant and equipment accounts. 

Income accounts. 

Operating revenue accounts. 

Operating expense accounts. 

Index to system of accounts... 


j;."t 


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25 

27 

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APPENDIX. 

Bookkeeping system for small companies. 


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ORDER. 


At a General Session of the INTERSTATE COMMERCE 
COMMISSION, held at its office in Washington, D. C., 
on the 13th day of October, 1914. 

The subject of a Uniform System of Accounts to be prescribed for 
and kept by telephone companies being under consideration, the 
following order was entered: 

It is ordered , That the Uniform System of Accounts for Telephone 
Companies, Class C, with the text pertaining thereto, embodied in 
printed form to be hereafter known as Issue of 1915, a copy of which 
is now before this Commission, be, and the same is hereby, approved; 
that a copy thereof duly authenticated by the Secretary of the Com¬ 
mission be filed in its archives, and a second copy thereof, in like 
manner authenticated, in the office of the Division of Carriers , 
Accounts; and that each of said copies so authenticated and filed 
shall be deemed an original record thereof. 

It is further ordered, That the said Uniform System of Accounts for 
Telephone Companies, Class C, with the text pertaining thereto, be ; 
and the same is hereby, prescribed for the use of Class C telephone 
companies (those having annual operating revenues exceeding $10,000 
but not more than $50,000), subject to the provisions of the Act to 
Regulate Commerce as amended, in the keeping and recording of 
their accounts; that each and every such carrier and each and every 
receiver or operating trustee of any such carrier be required to keep 
all accounts in conformity therewith; and that a copy of the said 
issue be sent to each and every such carrier and to each and every 
receiver or operating trustee of any such carrier. 

It is further ordered , That any such carrier or any receiver or 
operating trustee of any such carrier may subdivide any primary 
account in the said issue (as permitted in the general instructions con¬ 
tained therein); or may make assignment of the amount charged to 
any such primary account to operating divisions, to its individual lines, 
or to States: Provided , however, That such subprimary accounts set 
up or such assignments made by any such carrier or by any receiver 
or operating trustee of any such carrier do not impair the integrity 
of the accounts hereby prescribed. 

It is further ordered, That in order that the basis of comparison 
with previous years be not destroyed, any such carrier or any receiver 

( 5 ) 


6 


or operating trustee of any such carrier may, during the twelve 
months ending December 31, 1915, keep and maintain, in addition 
to the accounts hereby prescribed, such portion or portions of its 
present accounts as may be deemed desirable by any such carrier, 
or by any receiver or operating trustee thereof, for the purpose of 
such comparison; or, during the same period, may maintain such 
groupings of the primary accounts hereby prescribed as may be 
desired for that purpose. 

It is further ordered, That any such carrier or any receiver or oper¬ 
ating trustee of any such carrier, in addition to the accounts hereby 
prescribed, may, unless otherwise ordered, keep any temporary or 
experimental accounts, the purpose of which is to develop the effi¬ 
ciency of operation: Provided, however, That such temporary or ex¬ 
perimental accounts shall not impair the integrity of any primary 
account hereby prescribed. 

It is further ordered, That January 1, 1915, be, and is hereby, fixed 
as the date on which the said issue of the Uniform System of Ac¬ 
counts for Telephone Companies, Class C, shall become effective. 

By the Commission: 

(Seal) George B. McGinty, 

Secretary. 


INTRODUCTORY LETTER. 


Interstate Commerce Commission, 

Division of Carriers’ Accounts, 

Washington, October 13, 19H. 

To Class C Telephone Companies: 

This Uniform System of Accounts for Telephone Companies, 
Class C, is that approved and prescribed in the order of the Interstate 
Commerce Commission, the text of which immediately precedes this 
letter. The Act to Regulate Commerce as amended invests the Com¬ 
mission with authority to prescribe the forms of accounts to be kept 
by telephone companies subject to the act, and prohibits the use of 
any accounts other than those prescribed by the Commission. The 
observance of the rules and regulations stated in this system of 
accounts therefore becomes obligatory upon persons having direct 
charge of the accounts of the companies concerned, and such persons 
will be held responsible for their proper application. 

To enable telephone companies to determine their status under the 
Act to Regulate Commerce, the following conference ruling of the 
Commission, promulgated March 13, 1911, is quoted: 

No. 305. Application op the Amended Act to Telegraph and Telephone 
Companies: 

(а) Each and every telegraph and telephone company which transmits messages 
over its line or lines from a point in one State, territory, or district of the United States 
to any other State, territory, or district of the United States, or to any foreign country, 
is subject to the provisions of the act. 

(б) If a telegraph or telephone company, the line of which is wholly within a 
single State, territory, or district of the United States, receives a message within 
such State, Territory, or District of the United States, for transmission to a point 
without the State, territory, or district of the United States, which it transmits over 
its line to another point in the same State, territory, or district of the United States 
and there delivers it to an interstate line for transmission to destination, the first- 
named company by virtue of its participation in this transaction, is not made subject 
to the provisions of the act, unless there be an arrangement between that company 
and its connection for through continuous transmission of such messages, in which 
latter case all of the participating companies in such through continuous transmission 
are subject to the provisions of the act. 

(c) If two or more lines are connected so that a person within one State, Territory, 
or District of the United States talks with a person at a point without such State, 
Territory, or District of the United States, or so that a message is transmitted directly 
from a point within a State, Territory, or District of the United States to a point 
without the same, the transmission of messages in this manner constitutes interstate 
commerce and brings all of the participating lines within the purview of the act. 

(d) It follows that telegraph and telephone companies subject to the act, as above 
indicated, must conform to the provision of section 1 thereof requiring that all of 
their rates and charges for the transmission of interstate messages shall be reasonable 

(7) 


35819°—14-2 




8 


and just, and that such companies may lawfully issue franks covering free interstate 
service or may grant free interstate service to the same extent, and subject to the 
same limitations as other common carriers under the provisions of said section. 

( e) Such telegraph and telephone companies subject to the act are also governed 
by the provisions of section 3 forbidding any undue or unreasonable preference or 
advantage by rebates or otherwise, or any undue or unreasonable prejudice or disad¬ 
vantage in any respect whatsoever, and are subject to the lawful orders of the Com¬ 
mission made pursuant to the provisions of section 15 of the act, and also of section 20 
thereof respecting the keeping of accounts and memoranda and the making of reports 
to the Commission. 

Although the lines of a company may be entirely within one State, 
if it handles interstate messages for long-distance companies on a 
commission basis or otherwise handles interstate messages under the 
conditions named in paragraph c of the ruling, it is subject to the 
Act to Regulate Commerce. 

The system of accounts prescribed herein applies only to Class C 
companies (those having annual operating revenues exceeding $10,000 
but not over $50,000). The system for the larger companies has 
been in effect since January 1, 1913, and is contained in a separate 
publication. 

It has been the aim, in preparing the system of accounts, to make 
it as simple as possible, and at the same time furnish such infor¬ 
mation as is needed by the Commission and is useful to the compa¬ 
nies. It is believed that this system of accounts will be sufficient 
to meet the requirements of Class C companies and will not be 
difficult of application. If, however, any Class C companies desire to 
keep their accounts in greater detail, they may subdivide any of 
the accounts prescribed herein, or may adopt the system prescribed 
for Class A or Class B companies. 

In formulating this system of accounts it has been the endeavor 
to enlist the cooperation of the telephone companies and of the 
various State commissions having supervision of telephone com¬ 
panies. For that purpose the system of accounts in tentative form 
has been submitted for criticisms and suggestions, and due consid¬ 
eration has been given to all responses received. 

Accounting officers are invited to correspond with this office should 
question arise with regard to the correct interpretation of any ac¬ 
count or rule prescribed in the system of accounts, in order that 
uniformity may be secured in the application of its provisions. 

As an aid to the smaller telephone companies in the keeping of 
their accounts, there is contained in the appendix a bookkeeping 
system for small telephone companies. This form of bookkeeping 
is suggestive only, and it is not required that the companies make 
use of it either in whole or in part. The companies may for the pres¬ 
ent adopt any bookkeeping system they desire, so long as the one 
adopted will produce the results required by the system of accounts 
herein prescribed. 

Fred W. Sweney, 

Chief Examiner of Accounts. 


GENERAL INSTRUCTIONS. 


The records of telephone companies shall be kept with sufficient 
particularity to show fully the facts pertaining to all entries made in 
the accounts provided herein. Where the full information is not 
recorded in the general books, the entries therein shall be supported 
by other records in which the full details shall be shown. Such 
general book entries shall contain sufficient reference to the detail 
records to permit ready identification of the latter, and the detail 
records shall be filed in such manner as to be readily accessible for 
examination by representatives of the Interstate Commerce Com¬ 
mission. 

1. Telephone companies divided into four classes.—For the purposes of the systems 
of accounts prescribed by the Interstate Commerce Commission telephone companies 
are divided into four classes, as follows: 

Class A. Companies having average annual operating revenues exceeding $250,000. 

Class B. Companies having average annual operating revenues exceeding $50,000, 
but not more than $250,000. 

Class C. Companies having average annual operating revenues exceeding $10,000, 
but not more than $50,000. 

Class D. Companies having average annual operating revenues of $10,000 or less. 

The system of accounts contained herein applies to Class C companies and shall be 
observed by all Class C companies (as defined above) that are subject to the Act to 
Regulate Commerce. Class C companies which desire more detailed accounting 
may subdivide the accounts prescribed herein, or they may adopt in whole or in 
part the classifications prescribed for Class A or for Class B companies. The classi¬ 
fications for Class A and Class B companies are contained in a separate publication. 

No detailed classifications of accounts are at present prescribed for Class D com¬ 
panies. 

2. Classifications of accounts.— The system prescribed herein for Class C com¬ 
panies contains the following general classifications of accounts: 

(а) Balance-sheet accounts. 

(б) Plant and equipment accounts. 

(c) Income accounts. 

( d) Operating revenue accounts. 

(i e) Operating expense accounts. 

3. Separation of exchange and toll systems. —If a company operates two or more 
exchange systems or toll systems the accounts for the plant and equipment, operating 
revenues, and operating expenses shall be kept in such manner as will indicate the 
items which pertain solely to any one exchange system or any one toll system. The 
items pertaining to two or more systems shall be designated as common. It is not 
required that the companies keep separate sets of accounts for each exchange or toll 
system, although this may be done if desired. It is only necessary that the items 
be noted to indicate the exchange or toll system to wliich they pertain, or be noted 
common to show that they are applicable to the entire property. 

( 9 ) 



10 


By an exchange system is meant the property devoted to telephone service within 
the area referred to and usually described in contracts with subscribers as that within 
which local service is furnished at rates specified in such contracts. An exchange 
system may include one or more central offices. 

By a toll system is meant the property devoted to the operation of long-distance 
or toll lines which connect different exchange systems where a charge is made for the 
use of such lines separate and apart from the charge for exchange service. Usually 
a company would have one toll system only. 

4. Balance sheet defined.— The balance sheet is a statement of the assets, liabilities, 
and surplus or deficit of a business at a given time. It contains a statement of the 
ledger balances after the accounts covering the revenues, expenses, and other income 
items have been closed into “ Surplus.” 

5. Plant and equipment accounts defined. —The plant and equipment accounts , some¬ 
times termed fixed capital or construction accounts, are the accounts which show the 
investment in property, both tangible and intangible, used in the telephone opera¬ 
tions and in operations incident thereto. Ten primary plant and equipment ac¬ 
counts (Nos. 200 to 290) are provided. The investment in plant and equipment shall 
be distributed over these accounts in accordance with the texts of the accounts. 

6. Income accounts defined. —The income accounts are the accounts which show 
the amounts of money that the company has received or becomes entitled to receive 
for services rendered during a given period, the return accruing during the period 
upon investments, and the disbursements and obligations incurred that affect the 
disposition of the amounts so received or accrued. 

The balances in these accounts shall be drawn together annually in a ledger account 
or in a statement form which will give the net income (or net loss) for the year. This 
balance shall then be transferred to the account “ Surplus,” which shows the ac¬ 
cumulated undivided profits (or deficit) of the company. 

7. Operating revenues defined. —By operating revenues are meant all moneys which 
the company receives or becomes entitled to receive for telephone service and for serv¬ 
ices incident thereto. Credits to the revenue accounts shall be based upon the 
gross charges made for the service rendered by the company. The totals of the pri¬ 
mary operating revenue accounts shall be transferred annually to the Income Account 
under title of account No. 300, “Telephone operating revenues.” 

8. Operating expenses defined. —By operating expenses are meant the expenses of 
maintaining the property devoted to telephone operations, the expenses of conducting 
the telephone operations and services incident thereto, the expenses of collecting 
revenues and of accounting, and the general and supervisional expenses in connection 
with the foregoing. The totals of the primary operating expense accounts shall be 
transferred annually to the Income Account under title of account No. 330, “Tele¬ 
phone operating expenses.” 

9. Cost of plant and equipment. —The term cost as used in the plant and equipment 
(construction) accounts means the actual cost in money of labor and materials used in 
construction, the actual cost in money of property acquired after construction, or, if 
the consideration given is other than money, the actual money value of such other 
consideration at the time of the purchase. Cost of labor includes not only wages, 
salaries, and fees paid employees, but also personal expenses of such employees when 
borne by the company. Cost of materials and supplies consumed in construction is 
their cost at the places where they enter into construction, including cost of transpor¬ 
tation and inspection. 

If officers and employees of an operating company are specially assigned to con¬ 
struction work, an equitable proportion of their salaries and expenses shall be charged 
to Plant and Equipment. No charges, however, shall be made to plant and equipment 


11 


accounts for merely incidental services of officers and employees whose time is regu¬ 
larly devoted to the operation and maintenance of the plant. 

10. Plant and equipment in service January 1, 1915. —The cost or ledger value of plant 
and equipment on hand January 1,1915, shall be charged to primary plant and equip¬ 
ment accounts Nos. 200 to 270, if such distribution can be accurately made. If not 
possible to make such distribution, the entire cost or ledger value, or that portion 
which can not be distributed, shall be charged to account No. 290, ‘ ‘Plant and 
equipment in service January 1, 1915,” until such time as the distribution may be 
possible. 

11. New construction.—When any new plant and equipment is constructed or other¬ 
wise acquired, the cost thereof shall be charged to the various primary plant and 
equipment accounts (Nos. 200 to 280) in accordance with the text of the accounts. 

12. Reconstruction.— Reconstruction (or extraordinary repairs) includes the fol¬ 
lowing: «** 

(a) Restoring to an efficient or proper condition buildings, structures, or other units 
of property which have deteriorated. 

(b) Substituting, in order to maintain normal efficiency, new parts for old parts of 
continuous structures, such as pole lines, cables, wires, and conduits. 

(c) Restoring the condition of property damaged by storm, flood, fire, or other 
casualty. 

(d) Recovering salvage and removing retired or abandoned property in connection 
with above-mentioned work. 

Reconstruction should be taken into consideration in arriving at a rate of depre¬ 
ciation as explained in section 16. Care should be taken to see that ordinary current 
repairs as defined in section 14 are not handled as reconstruction. 

When plant and equipment is reconstructed and the property as reconstructed is of 
no greater use or capacity than was the original property the cost of reconstruction shall 
be treated as follows: 

Debit— 

To account No. 185, “Depreciation reserve,” the amount carried there¬ 
in with respect to such property. 

To account No. 135, “Materials and supplies,” the value of salvage re¬ 
covered from original property. 

To accounts for operating expenses (Nos. 690, 610, or 640), the remain¬ 
der of the cost of reconstruction. 

Credit— 

To account No. 115, “Cash,” or to other appropriate accounts, the cost 
of reconstruction. 

If. the property as reconstructed is more useful or of greater capacity than was the 
original property the cost of reconstruction shall be treated as follows: 

Debit— 

To accounts for plant and equipment (Nos. 200 to 270), the excess cost 
of the property as reconstructed over the cost or ledger value of the origi¬ 
nal property. 

To account No. 185, “Depreciation reserve,” the amount carried there¬ 
in with respect to the property reconstructed. 

To account No. 135, “Materials and supplies,” the value of salvage 
recovered from original property. 

To accounts for operating expenses (Nos. 600, 610, or 640), the remain¬ 
der of the cost of reconstruction. 

Credit— 

To account No. 115, “Cash,” or other appropriate accounts, the cost of 
reconstruction. 

When it is necessary substantially to reconstruct or to replace a major portion of any 
unit of property or any important section of a continuous structure, the cost shall be 
handled through the plant and equipment accounts; that is, the cost of the property 
removed or replaced shall be credited to the appropriate plant and equipment accounts 
and the new property shall be charged thereto. (See section 13, following.) 


12 


13. Plant and equipment retired.—When any plant and equipment is destroyed, 
withdrawn, or otherwise retired from service for any cause, the cost or ledger value of 
the property retired shall be written off as follows: 

Debit— 

To account No. 185, “Depreciation reserve,” the amount carried 
therein with respect to the property retired. 

To account No. 135, “Materials and supplies,” the value of salvage 
recovered from property. 

To account No. 640,Other maintenance expenses,” the remainder of 
the cost or ledger value of property and the expense of retirement. In 
case an important piece of property or a considerable length of line 
is destroyed, withdrawn, or otherwise retired and not replaced by other 
property, the charge for the remainder of the cost or ledger value and the 
expense of retirement shall be made to account No. 195, “Surplus,” in¬ 
stead of account No. 640, “Other maintenance expenses.” 

Credit— 

To accounts for plant and equipment (Nos. 200 to 290), the amounts 
theretofore charged to such accounts with respect to such property. 

The cost of the property, if any, installed in place of that withdrawn shall be charged 
to plant and equipment accounts (Nos. 200 to 280). 

14. Repairs.—The term repairs as used in the texts of accounts Nos. 600, 610, and 
640 includes the following: 

(а) Testing for, locating, and clearing crosses, breaks, grounds, and other line 
troubles, including routine work intended to prevent such troubles, as, for example, 
pulling up slack, tightening guys, and resetting guy stubs, trimming trees, straight¬ 
ening poles and cross arms, and cleaning and adjusting apparatus; 

(б) Replacement of minor or short-lived parts of structures, equipment, or facilities; 

(c) Replacement of minor parts of wire plant or equipment when made necessary 
by faulty adjustments, excessive strains, mechanical injuries, or other minor casual¬ 
ties; 

(d) Rearrangement and changes in location of plant (except subscribers’ station 
equipment, for which a special account is provided), including rearrangement of 
circuits, reassociation of party lines, rearranging grouping of trunks and calling cir¬ 
cuits, recross connecting on distributing frames, rerunning jumper w'ires, underlining 
switchboard jacks, etc., together with materials used for such purposes which do not 
add to the tangible value of such plant; 

(e) Recovering salvage and removing retired or abandoned property (except sub¬ 
scribers’ station equipment) in connection with the above work. 

Such repairs are not intended to be taken into accoun t in fixing a rate of depreciation. 

15. Cost of repairs.—The term cost of repairs , as used in the texts of the various 
operating expense accounts, should be understood to include the wages, salaries, 
and fees paid employees directly engaged in the work of repairs, the personal expenses 
of such employees when borne by the company, the cost (including transportation) of 
materials and supplies consumed, and the expense of facilities employed in making 
the repairs, less the value of any salvage recovered. It includes also the cost of direct 
supervision, such as by foremen or superintendents of repair gangs, but does not 
include the salaries and expenses of general officers of the company. 

16. Depreciation.—Depreciation is the decline in value of tangible property and is 
one of the losses of the company properly chargeable to Operating Expenses. 
There is certain wear and tear taking place in the property which can not be covered 
by current repairs, and in addition the property is likely to become obsolete or inade¬ 
quate so that at some future date it must be discarded for that reason and replaced. 
In order to provide for the expense when the property is taken out of service or re¬ 
placed, charges should be made to Operating Expenses to provide a reserve for such 
purpose. If this is not done the expense of replacing must be charged in bulk to 
Operating Expenses when the property is replaced, which would cause the company 
to show low operating expense in years when no reconstruction takes place and high 


13 


operating expense in years when reconstruction is performed. By providing depre¬ 
ciation charges the operating expense accounts will show a record of expenses from 
year to year more in harmony with true conditions. 

The expense of depreciation may consist of— 

(а) Losses suffered through current lessening in value from wear and tear and not 
covered by current repairs; for example, a switchboard may be kept in workable 
condition by current repairs, but at some future date it may be in such condition 
that replacement is necessary. 

(б) Obsolescence or inadequacy resulting from age, new inventions, or public 
requirements; for example, substituting common battery for magneto system, auto¬ 
matic for manual system, or underground for overhead construction. 

(c) Losses suffered through storms, floods, and other casualties. 

Charges for depreciation should be based on a rule that will evenly distribute over 
Operating Expenses during the life of the property the original cost (less the salvage). 
The Commission at present does not prescribe the rate of depreciation, but leaves this 
matter to the discretion of the company. 

The amounts estimated to cover depreciation shall be charged to operating expense 
account No. 630, “Depreciation of plant and equipment,” and credited to balance- 
sheet account No. 185, “Depreciation reserve,” against which shall be charged, to 
the extent that such charges are covered by the reserve, the expense of reconstruction or 
the cost or ledger value of property when retired. (See sections 12 and 13, pages 11 
and 12.) 

It is not required that'a special fund be created by setting aside cash or other assets 
out of the general funds of the company for the purpose of meeting the necessary 
expenditures to restore the property when reconstruction becomes necessary. How¬ 
ever, this may be done if desired, in which case the fund so created shall be carried 
in account No. 140, “Special funds.” 



LIST OF ACCOUNTS 


For Class C Companies. 


BALANCE SHEET ACCOUNTS. 

ASSET SIDE. 

Page. 

100. Plant and equipment. 17 

105. Other property. 17 

110. Securities. 17 

115. Cash. 17 

120. Notes receivable. 17 

125. Due from subscribers and agents. 17 

130. Accounts receivable. 17 

135. Materials and supplies. 17 

140. Special funds. 18 

145. Prepayments. 18 

150. Other debit accounts. 18 

LIABILITY SIDE. 

160. Capital stock. 18 

165. Funded debt. 18 

170. Notes payable. 19 

175. Accounts payable. 19 

180. Accrued liabilities not due. 19 

185. Depreciation reserve. 19 

190. Other credit accounts. 19 

195. Surplus. 19 

PLANT AND EQUIPMENT ACCOUNTS. 

200. Intangibles. 21 

210. Land and buildings. 21 

220. Central office equipment. 21 

230. Station equipment. 21 

240. Exchange lines. 21 

250. Toll lines. 21 

260. General equipment. 22 

270. Undistributed construction expenditures. 22 

280 Plant and equipment purchased. 22 

290. Plant and equipment in service January 1, 1915. 22 


35819°—14-3 


(15) 

































16 


INCOME ACCOUNTS. 

CREDITS. 

Page. 

300. Telephone operating revenues. 23 

310. Other operating revenues. 23 

320. Miscellaneous income. 23 

DEBITS. 

330. Telephone operating expenses.>. 23 

340. Other operating expenses. 23 

350. Taxes. 23 

360. Interest accrued. 24 

370. Miscellaneous charges to income. 24 

380. Dividends declared. 24 

OPERATING REVENUE ACCOUNTS. 

500. Exchange revenues. 25 

510. Toll revenues. 25 

520. Miscellaneous revenues. 25 

530. Licensee revenues—Cr. 26 

540. Licensee revenues—Dr. 26 

OPERATING EXPENSE ACCOUNTS. 

600. Repairs of wire plant. 27 

610. Repairs of equipment. 27 

620. Station removals and changes. 27 

630. Depreciation of plant and equipment. 27 

640. Other maintenance expenses. 27 

650. Operators’ wages. 27 

660. Other traffic expenses. 28 

670. General office salaries. 28 

680. Other general expenses. 28 


\ 

\ 

























TEXT OF BALANCE SHEET ACCOUNTS. 

For Class C Companies. 


Asset Side. 

100. Plant and Equipment. 

This account shall include the cost of all property, tangible and intangible, 
used by the company in its telephone operations and operations incident thereto, 
at the date of the balance sheet. 

Note.—S eparate ledger accounts shall be provided for each of the primary plant and equipment 
accounts (Nos. 200 to 290), and the totals of the balances of such accounts shall be carried to account 
No. 100 when the balance sheet is prepared. 

105. Other Property. 

This account shall include the cost of property used otherwise than in tele¬ 
phone operations, such as lighting, water, power, or manufacturing plants; the 
cost of lands and buildings not used in any of the company’s operations; and 
similar investments. 

110. Securities. 

This account shall include the cost or ledger value of stocks, bonds, mortgages, 
and other evidences of indebtedness (including notes due and payable after one 
year from date of issue) held by or for the company. 

In stating this account on the balance-sheet statement the par value of securities 
issued or assumed by the company and carried in this account shall be deducted, 
in order that this account shall show only the cost or ledger value of securities of 
other companies. 

115. Cash. 

This account shall include the amount of cash and other current funds on 
hand or on deposit in banks or with trust companies. This account shall also 
include special deposits of cash for payment of dividends or interest, or for 
other purposes. 

120. Notes Receivable. 

This account shall include the cost or ledger value of all notes, drafts, and other 
evidences of money receivable on demand or within one year from date of issue. 

125. Due from Subscribers and Agents. 

This account shall include amounts owing to the company by subscribers and 
patrons for services rendered or billed; also amounts due from agents and others 
authorized to collect operating revenues. 

130. Accounts Receivable. 

This account shall include the amounts owing to the company by corporations, 
firms, or individuals for miscellaneous bills (other than those covering telephone 
and incidental services); amounts advanced to employees for working funds; divi¬ 
dends declared by others, but not collected; interest due and collectible on securi¬ 
ties, mortgages, accounts, and deposits; and other items of amounts collectible. 

135. Materials and Supplies. 

This account shall include the balances representing the cost of materials and 
supplies on hand. 


( 17 ) 



18 


Charge this account with the cost of materials and supplies purchased, includ¬ 
ing transportation charges. Charge also to this account the salvage value of mate¬ 
rials and supplies recovered from plant retired and returned to stores. 

Credit this account with the value of materials and supplies when used or 
disposed of otherwise. 

Note.— When materials and supplies are purchased for immediate use, they need not be carried 
through this account, but may be charged directly to Plant and Equipment, Operating Expenses, 
or other accounts affected. 

140. Special Funds. 

This account shall include the amount of cash, the cost or ledger value of securi¬ 
ties, and other assets which have been set apart and are held in depreciation 
funds, sinking funds, insurance funds, and other funds held for specific purposes. 

In stating this account on the balance-sheet statement the par value of securi¬ 
ties issued or assumed by the company and carried in this account shall be de¬ 
ducted in order to show only the net assets in the funds other than the company’s 
own securities. 


145. Prepayments. 

Charge this account with the amount of rents, taxes, insurance, directory ex¬ 
penses, and like disbursements made in advance of the period to which they apply. 
As the periods covered by such prepayments expire, credit this account and charge 
the proper operating expense or other accounts with the amount applicable to 
the period. 


150. Other Debit Accounts. 

This account shall include all debits pertaining to the balance sheet and not 
provided for elsewhere, including debit items, the final disposition of which is 
uncertain. This account shall include such items as accrued income not due, 
discounts on capital stock, discounts on bonds, and similar items. 


Note.— The entries in this account shall be made in sufficient detail to permit an analysis in the 
reports to the Interstate Commerce Commission and where necessary separate subaccounts shall be 
provided. 

Liability Side. 

160. Capital Stock. 

This account shall include the total par value of outstanding capital stock. 
In case of the issue of two or more classes of capital stock, such as common and 
preferred, a subaccount shall be provided for each class. If capital stock is 
paid for in installments, stock to be issued when fully paid, a subaccount en¬ 
titled “Installments on capital stock” shall be provided, to which shall be 
credited the amounts of installments received by the company; when stock 
certificates are issued to stockholders the subaccount shall be charged and the 
appropriate capital stock subaccount shall be credited. 

In stating this account on the balance-sheet statement the par value of stock 
held by the company in its treasury, in sinking or other reserve funds, or other¬ 
wise, shall be deducted, in order that this account shall show only the par value 
of stock held by the public. 


Note.— If the telephone company is not incorporated but is operated by an individual, firm, copart¬ 
nership, or association, accounts No. 160, “Capital stock,” and No. 195, “Surplus” shall be omitted, 
and in lieu thereof an account entitled “Proprietor’s account” shall b« substituted. 


165. Funded Debt. 

This account shall include the par value of all bonds, notes, mortgages, receiver’s 
certificates, and other evidences of indebtedness issued or assumed by the com¬ 
pany and which are not due and payable until after one year from date of issue. 
In case of the issuance of two or more classes of funded debt a subaccount shall 
be provided for each class. 


19 


In stating this account on the balance-sheet statement the par value of funded 
debt issued or assumed by the company and held by it in its treasury, in sinking 
or other reserve funds, or otherwise, shall be deducted, in order that this account 
shall show only the par value of funded debt held by the public. 

170. Notes Payable. 

This account shall include the par value of all notes, drafts, and other evidences 
of indebtedness issued or assumed by the company, and which are payable on 
demand or within one year from date of issue. 

175. Accounts Payable. 

This account shall include amounts owing to other companies, firms, and indi¬ 
viduals and not includible in accounts Nos. 165 and 170. This account shall 
include miscellaneous bills unpaid, audited vouchers unpaid, dividends declared 
and unpaid, interest due and unpaid, and similar items. 

180. Accrued Liabilities Not Due. 

Credit to this account the amounts of taxes, interest, rents, and other expenses 
which have accrued and have been charged to operating expense or other accounts 
in excess of the amounts actually paid. When the payments become due this 
account shall be charged and the cash or other accounts affected shall be credited. 

185. Depreciation Reserve. 

Credit to this account the amounts which are charged monthly or annually to 
operating expense account No. 630, “Depreciation of plant and equipment,” to 
cover the depreciation taking place in plant and equipment. 

Charge to this account, when any plant or equipment is reconstructed or 
retired, the amount heretofore credited to this account in respect of the property 
reconstructed or retired. (See sections 12 and 13, pages 11 and 12.) 

190. Other Credit Accounts. 

This account shall include all credit items pertaining to the balance sheet and 
not provided for elsewhere, including credit items the final disposition of which 
is uncertain. This account shall include such items as subscribers’ deposits, 
service billed in advance, premiums on capital stock, premiums on bonds, and 
reserves other than the depreciation reserve. 

Note.— The entries in this account shall be made in sufficient detail to permit an analysis in the 
reports to the Interstate Commerce Commission and where necessary separate subaccounts shall be 
provided. 

195. ‘Surplus. 

Under this head on the balance-sheet statement shall be shown the balance in 
the surplus account. In case this account shows a debit balance it shall be 
shown on the balance sheet in red ink. The surplus account is the difference 
between the total assets and total liabilities and shows the undivided surplus 
or the deficit of the company. 

The net income (or loss) for the year as shown by the Income Account shall be 
transferred to this account. This account shall also be credited or charged with 
any adjustments affecting the asset and liability accounts and any miscellaneous 
gains or losses which are not attributable to the operations for the year as shown 
by the Income Account. 

The entries to this account shall be shown in such detail as will clearly explain 
their purposes and show all significant facts involved. 

Note.— If the telephone company is not incorporated but is operated by an individual, firm, copart¬ 
nership, or association, accounts No. 160, “Capital stock,” and No. 195, “Surplus,” shall be omitted, 
and in lieu thereof an account entitled “Proprietor’s account” shall be substituted. 



TEXT OF PLANT AND EQUIPMENT ACCOUNTS. 


For Class C Companies. 


General Note Applicable to all Plant and Equipment Accounts.— Articles of small value or of 
short life, or articles that are likely to be lost or stolen, shall not be charged to the plant and equip¬ 
ment accounts but shall be charged to the appropriate operating expense accounts. 

200. Intangibles. 

Charge to this account the expense of organizing the company, the cost of 
franchises and patent rights, and the cost of other intangibles obtained by the 
company and used or useful in the operations of the company. 

210. Land and Buildings. 

Charge to this account the cost of land (other than right of way) and buildings 
used in telephone operations and operations incident thereto, and the cost of all 
permanent fixtures to such buildings. 

220. Central Office Equipment. 

Charge to this account the cost of local and toll switchboards and appurtenances, 
main and intermediate frames, relay and coil racks, interior wires and cables, 
power apparatus, telephone sets used in the operating and terminal rooms, and 
other apparatus in the operating and terminal rooms; also the cost of furniture 
and fixtures in the operating and terminal rooms. 

230. Station Equipment. 

Charge to this account the cost of equipment and apparatus on the premises of 
subscribers, patrons, and others. 

This account shall include telephone sets, private branch exchanges, booths 
and fixtures, inside wiring, and other apparatus, and the cost of installation. 

This account shall include the cost of telephone sets used by company’s em¬ 
ployees, other than those in the operating and terminal rooms of central offices. 

240. Exchange Lines. 

Charge to this account the cost of wire plant between the central office and 
the premises of subscribers, between central offices and pay stations, and between 
two central offices in the same exchange area. 

This account shall include the cost of right of way, poles, underground conduits, 
manholes, wires, cables, and fixtures. 

Note.—I f lines are used for both exchange and toll service, the cost shall be charged to either 
account No. 240 or account No. 250, according to the principal use made of the lines. 

250. Toll Lines. 

Charge to this account the cost of wire plant used in the transmission of toll 
messages between offices in different exchange areas. 

This account shall include the cost of right of way, poles, underground con¬ 
duits, manholes, wires, cables, and fixtures. 

Note.—I f lines are used for both exchange and toll service, the cost shall be charged to either 
account No. 240 or account No. 250, according to the principal use made of the lines. 

( 21 ) 



260. General Equipment. 

Charge to this account the cost of automobiles, wagons, horses, shop machinery, 
tools and implements, office furniture and fixtures (other than in operating 
rooms and terminal rooms), and other equipment of the company not covered 
by accounts Nos. 220 and 230. 

270. Undistributed Construction Expenditures. 

Charge to this account expenditures made in the construction orjacquisition 
of plant and equipment when such expenditures can not be assigned to any of 
the accounts Nos. 200 to 260. 

This account includes expenditures made during the construction period for 
engineering and law expenses, taxes, insurance, interest, and other incidental 
construction items which can not properly be charged to any other plant and 
equipment account. When any such expenditure can be assigned to any spe¬ 
cific item of plant or equipment it shall be charged to the account appropriate 
for such specific item. 

280. Plant and Equipment Purchased. 

When a going or completed telephone plant is purchased or constructed under 
contract, the cost thereof shall be charged to this account until such time-as a 
basis may be determined upon for distribution of the cost over accounts Nos. 200 
to 270. 

290. Plant and Equipment in Service January 1, 1915. 

To this account shall be charged the amounts carried in the company’s books 
on January 1 , 1915, representing the plant and equipment installed prior to and in 
service on that date, until such time as it is possible to distribute such amounts 
over accounts Nos. 200 to 270. 


TEXT OF INCOME ACCOUNTS. 


For Class C Companies. 


300. Telephone Operating Revenues. 

This account shall include the total operating revenues derived from the tele¬ 
phone operations for the year. To this account shall be credited the total of 
amounts carried in the primary operating revenue accounts (Nos. 500 to 540). 

310. Other Operating Revenues. 

If the company conducts operations other than telephone operations, such as 
lighting, water, power, or manufacturing plants,.the revenues accruing from such 
operations shall be credited to this account. This account includes the revenues 
from property the investment in which is carried in account No. 105, “Other 
property.” 

320. Miscellaneous Income. ' 

Credit to this account all revenues accruing to the company other than those 
obtained through telephone or other operations. This account shall include— 
Interest receivable from others on mortgages, bonds, notes, etc. 

Dividends receivable from other companies on securities owned. 

Rents receivable from plant leased to others and not used in part by the com¬ 
pany in its telephone operations, such as an entire exchange system, an 
important section of pole lines, etc. 

Other similar items of income. 

Charge to this account any expenses incurred that are directly assignable to 
the revenues which are credited to this account, such as expense of maintenance 
of plant leased to others, expense of procuring interest and dividends, and 
similar charges. 

330. Telephone Operating Expenses. 

This account shall include the total operating expenses of the telephone opera¬ 
tions for the year. To this account shall be charged the total amounts carried 
in the primary operating expense accounts (Nos. 600 to 680). 

340. Other Operating Expenses. 

If the company conducts operations other than telephone operations, such as 
lighting, water, power, or manufacturing plants, the expense of maintenance 
and operation shall be charged to this account. This account includes the 
expenses of and taxes on property the investment in which is carried in account 
No. 105, “Other property.” 

350. Taxes. 

Charge this account with the amount of all taxes assessed against the telephone 
property, operations, or privileges of the company. Taxes paid in advance of 
the period to which they apply shall be charged to account No. 145, “Prepay¬ 
ments,” and as the term expires for which the taxes apply this account shall be 
charged and account No. 145 shall be credited. 

Taxes accrued in advance of their actual payment shall be charged to this 
account and credited to account No. 180, “Accrued liabilities not due.” When 
payments become due the latter account shall be charged and the cash or other 
accounts affected shall be credited. 

( 23 ) 



24 


360. Interest Accrued. 

Charge to this account interest on bonds, mortgages, notes, and other interest- 
bearing obligations, and interest on open accounts. No interest shall be charged 
on securities issued or assumed by the company and held by or for it. 

370. Miscellaneous Charges to Income. 

Charge to this account all expenses accrued or payments made which apply 
to the transactions of the year and which are not chargeable to Operating Expenses 
or to the preceding income debit accounts. This account shall include— 

Rents payable for plant and equipment leased, such as an entire exchange sys¬ 
tem, an important section of pole lines, etc., but not including minor 
rents which are provided for in account No. 680. 

Losses not properly chargeable as operating expense. 

Uncollectible bills. 

Other similar items. 

380. Dividends Declared. 

Charge this account with the amounts of dividends declared on outstanding 
capital stock of the company. If a dividend is payable in anything other than 
money, such thing shall be fully described in the entry. No dividends*shall be 
charged on capital stock issued by the company and held by or for it. 


TEXT OF OPERATING REVENUE ACCOUNTS. 

For Class C Companies. 


500. Exchange Revenues. 

Credit to this account all revenues accrued from the transmission of local mes¬ 
sages within the same exchange area. An exchange area is the area referred to and 
usually described in contracts with subscribers as that within which local service 
is furnished at rates specified in such contracts. This account shall include— 

Rentals from subscribers for local and rural service. 

Rentals from private branch exchanges. 

Charges for extension stations and extension bells. 

Charges for extra mileage in circuits to subscribers’ stations. 

Charges for extra directory insertions. 

Installation and cancellation charges when billed against subscribers. 
Revenues from public pay stations for calls within the exchange area. 
Charges for switching calls for farmer lines. 

Rents from attachments to exchange poles, and other rents for exchange 
property. 

Other revenues accruing from exchange operations. 

Charge to this account discounts allowed to subscribers for prompt payment, 
corrections of overcharges, authorized refunds on account of failures in transmis¬ 
sion, and other corrections affecting exchange revenues. 

510. Toll Revenues. 

Credit to this account all revenues derived from the transmission of messages 
between points in different exchange areas. This account shall include— 

Revenues from messages transmitted wholly over the company’s lines be¬ 
tween points in different exchange areas, whether from subscribers or pay 
stations. 

Company’s proportion of revenues on messages transmitted partly over the 
company’s lines and partly over lines of other companies (sometimes 
termed mileage). 

Commissions allowed the company by others for switching or handling toll 
messages within the exchange area or for originating such messages. 

Rents from toll lines leased to brokers or others, including telegraph com¬ 
panies. 

Rents from attachments to toll poles, and other rents from toll property. 
Other revenues accruing from toll-line operations. 

Charge to this account corrections of overcharges, authorized refunds on 
account of failures in transmission, and other corrections affecting toll revenue. 

520. Miscellaneous Revenues. 

Credit to this account all revenues accrued from telephone operations other 
than those provided for in accounts No. 500, “Exchange revenues,” and No. 510, 
‘ 1 Toll revenues. 5 ’ This account shall include— 

Revenues from messenger service. 

Revenues from advertisements in directories. 

Charges to telegraph companies for making collections and for other services 
(not transmission charges). 

Rents from property used in part in the company’s telephone operations other 
than those provided for in accounts Nos. 500 and 510, such as rent of offices, 
storerooms, and teams. 

Profit on sales of materials and supplies. 

Other miscellaneous operating revenues. 

( 25 ) 



26 


530. Licensee Revenues— Cr. 

When a telephone company grants to another telephone company the use of its 
patents or furnishes instruments and equipment and general supervision under 
an agreement for apportioning the revenues of the licensee, the proportion accru¬ 
ing to the licensor shall be credited by the licensor in this account. 

540. Licensee Revenues— Dr. 

When a telephone company is granted by another telephone company the use 
of its patents, or is furnished instruments and equipment and general supervision 
under an agreement for apportioning the revenues of the licensee, the proportion 
accruing to the licensor shall be charged by the licensee in this account. 


TEXT OF OPERATING EXPENSE ACCOUNTS. 

For Class C Companies. 


600. Repairs of Wire Plant. 

Charge to this account the cost of repairs of all exchange wire plant and toll wire 
plant, such as poles, conduits, manholes, wires, cables, and fixtures. (See section 
14, page 12.) 

610. Repairs of Equipment. 

Charge to this account the cost of repairs of central office equipment and station 
equipment, whether in the central office operating rooms and terminal rooms or on 
subscribers’ premises, such as switchboards, main and intermediate frames, relay 
and coil racks, interior wires and cables, power apparatus, telephone sets, private 
branch exchanges, and booths and fixtures; also furniture and fixtures in central 
office operating and terminal rooms. (See section 14, page 12.) 

620. Station Removals and Changes. 

Charge to this account the cost of removing or changing the location of station 
equipment. 

When stations are removed (not merely changed in lo’cation) the original cost 
of the instruments and the cost of installation (estimated if not known) shall be 
credited to account No. 230, “ Station equipment”; the value of the instruments 
and other material recovered shall be charged to account No. 135, “Materials and 
supplies”; and the cost of removing, the original installation cost, and any loss 
of material, such as the cost of interior wire not recovered, shall be charged to this 
account. 

When stations are changed from one location to another, charge this account 
with the cost of moving. Credit this account with amounts charged to sub¬ 
scribers for moves and changes. 

630. Depreciation of Plant and Equipment. 

Charge to this account monthly or annually the estimated amount of deprecia¬ 
tion accruing in the plant and equipment. (See section 16, page 12.) 

640. Other Maintenance Expenses. 

Charge to this account the cost of repairs of land, buildings and fixtures, auto¬ 
mobiles, wagons, tools and implements, and office furniture and fixtures; also other 
maintenance expense not provided for in the repair accounts. (See section 14, 
page 12.) 

When any plant or equipment is destroyed, withdrawn, or otherwise retired 
from service for any cause this account shall be charged with such portion of the 
cost or ledger value of such property (less salvage) as has not been provided for 
in account No. 185, “Depreciation reserve.” (See section 13, page 12.) 

650. Operators’ Wages. 

Charge to this account the pay of chief operators, supervisors, local and toll 
switchboard operators, information operators, and all other operators employed in 
central offices; also pay of operators at pay stations. 

( 27 ) 



28 


660. Other Traffic Expenses. 

Charge to this account the cost of power purchased, cost of labor and supplies in 
operating power plant, cost of renewing batteries, pay and expenses of messen¬ 
gers, and other expenses in connection with the operations of central offices and 
public pay stations. 

670. General Office Salaries. 

Charge to this account the salaries of general officers of the company and the 
salaries of other officers and employees whose salaries are not chargeable to any 
of the preceding expense accounts. 

680. Other General Expenses. 

Charge to this account all general expenses other than general office salaries. 
This account shall include the cost of— 

Office supplies and expenses. 

Stationery and printing (including postage). 

Traveling and incidental expenses of general officers and employees of gen¬ 
eral offices. 

Advertising. 

Preparing, printing, and distributing directories. 

Pay station commissions. 

Rents for general offices and central offices, pole attachments, and other minor 
rents, not including those paid for lease of entire telephone plants. (See 
account No. 370.) 

Insurance. 

Law expenses. 

Accidents and damages. 

Other general expenses. 

Note.—T he entries in this account shall be made in sufficient detail to permit an analysis in the 
reports to the Interstate Commerce Commission. 



INDEX TO THE SYSTEM OF ACCOUNTS. 

Roman numerals refer to the general instructions; Arabic numerals to the several accounts. 


Abandoned property. (See Retired property.) 

Accidents, expense due to, 680. (See also Casual¬ 
ties.) 

Accounting expense, viii. 

Accounts; accounts receivable balances, 130; inter¬ 
est receivable on, 130; accounts payable balances, 
175; interest payable on, 360. 

Accrued liabilities not due; liability balances, ISO; 
tax credits and charges, 350. 

Adjustments of balance-sheet accounts, 195. 

Advances. (See Prepayments.) 

Advertising; revenue from directory advertising, 
520; expense for, 680. 

Agents, balances due from, 125. 

Attachments to poles; rent receivable from, 500,510; 
rent payable for, 680. 

Automobiles; investment, 260; repair expense, 640. 

Balance sheet; definition, iv; accounts, 100-195. 

Bank deposits, asset balances of, 115. 

Battery renewal expense, 660. 

Bells, extension, revenue from, 500. 

Bills; accounts receivable balances, 130; accounts 
payable balances, 175; income charges for uncol¬ 
lectible bills, 370. 

Bonds; asset balances for bonds owned, 110; bond 
discount balances, 150; funded debt liability, 165; 
bond premium balances, 190; interest receivable 
on, 320; interest payable on, 360. 

Booths and fixtures; investment, 230; repair 
expense, 610. 

Brokers’ leased lines, rents receivable from, 510. 

Buildings; cost of restoration when deteriorated, 
xii; investment not used for telephone opera¬ 
tions, 105; investment used for telephone opera¬ 
tions, 210; repair expense, 640. 

Cables; reconstruction costs, xii; interior cable 
investment, 220; outside cable investment, 240, 
250; outside cable repairs, 600; interior cable 
repairs, 610. 

Cancellation charges, revenue from, 500. 

Capital stock; discount balances on, 150; liability 
balances, 160. 

Cash; current balances, 115; cash in special funds, 
140. 

Casualties; reconstruction costs due to, xii; repair 
costs due to, xiv; depreciation charges due to, xvi. 

Central offices; equipment investment, 220; equip¬ 
ment repairs, 610; pay of operators, 650; other 
traffic expenses, 660; rents payable for, 680. 

Changes; of plant location, xiv; of subscribers sta¬ 
tions, 620. 

Chief operators, pay of, 650. 

Circuit rearrangements included in repairs, xiv. 


Classes of telephone companies, i. 

Classifications of accounts; application of, i; list 
of, ii. 

Cleaning apparatus, repair charges for, xiv. 

Clearing line troubles, repair charges for, xiv. 

Coil racks; investment, 220; repair expense, 610. 

Collections; expense for revenue collection, viii; 
revenue from telegraph collections, 520. 

Commissions; received from switching and handling 
toll messages, 510; paid in connection with pay 
stations, 6S0. 

Common stock liability, 160. 

Conduits; reconstruction costs, xii; investment, 
240, 250; repair expense, 600. 

Cqnstruction. (See Plant and equipment.) 

Cost, definitions of, ix, xv. 

Cross arms, repair charges for straightening, xiv. 

Damages; charges assignable to reconstruction, 
xii; charges assignable to operating expense, 680. 

Debt. (See Accounts, Funded debt, Notes.) 

Deficit from operations, 195. 

Deposits; current and special deposit balances, 115; 
interest receivable on, 130; subscribers’ deposit 
balances, 190. 

Depreciation; definition and accounting, xvi; de¬ 
preciation fund assets, 140; depreciation reserve 
liability, 185; charges to operating expense, 630. 

Directories; prepaid expense balance, 145; revenue 
from extra insertions, 500; revenue from adver¬ 
tisements, 520; preparing, printing, and distrib¬ 
uting, 680. 

Discounts; asset balances on securities sold, 150; 
allowances to subscribers for prompt payment, 
500. 

Distributing frames, repair charges for work on, xiv. 

Dividends; deposits to meet payments, 115; uncol¬ 
lected balances of dividends receivable, 130; un¬ 
paid balances of dividends declared, 175; incomi 
credits for dividends receivable and debits for 
collection expense, 320; income debits for divi¬ 
dends declared, 380; dividends disallowed on 
company stock owned, 380. 

Drafts; drafts receivable balances, 120; drafts pay¬ 
able balances, 170. 

Employees. (See Pay, Personal expenses.) 

Engineering expenses assignable to investment, 270. 

Equipment; repair charges for minor replacements, 
xiv; investment for central offices, 220; invest¬ 
ment for stations, 230; general equipment invest¬ 
ment, 260; revenue credits and debits for use by 
licensee, 530, 540; repair expense for central offices 
and stations, 610; repair expense for general equip¬ 
ment, 640. (See also Plant and equipment.) 




30 


Exchange area; definition of, 500; revenue from ex¬ 
change service in, 500; revenue from toll switching 
and handling in, 510. 

Exchange lines; investment, 240, 240 note; repair 
expense, 600. 

Exchange revenues, credits and debits to, 500. 

Exchange systems; allocation of items to, iii; defi¬ 
nition of, iii; rents receivable from lease, 320; rents 
payable for lease, 370. 

Expenses. (See Operating expenses, Personal ex¬ 
penses.) 

Extension stations and bells, revenue from, 500. 

Extraordinary repairs considered as reconstruc¬ 
tion, xii. 

Farmer lines, revenue from switching for, 500. 

Fees; inclusion in cost of labor, ix; inclusion in cost 
of repairs, xv. 

Fire damage, reconstruction charges to cover, xii. 

Fixed capital accounts. (See Plant and equip¬ 
ment.) 

Fixtures; buildings fixtures, 210, 640; operating and 
terminal room fixtures, 220, 610; booth fixtures, 
230, 610; line fixtures, 240, 250, 600; office fixtures, 
260, 640. 

Flood damage, reconstruction charges to cover, xii; 
depreciation charges for, xvi. 

Foremen of repair gangs, pay of, xv. 

Frames; repair charges for work on distributing 
frames, xiv; investment in main and intermediate 
frames, 220; repair expense on main and interme¬ 
diate frames, 610. 

Franchise costs assignable to investment, 200. 

Funded debt; liability, 165; interest payable on, 360. 

Funds; special depreciation funds unrequired, xvi; 
advances for working funds, 130; special fund 
balances, 140. 

Furniture; in operating and terminal rooms, 220, 
610; in offices, 260, 640. 

General equipment; investment, 260; repair ex¬ 
pense, 640. 

General expenses; for salaries, 670; other than for 
salaries, 680. 

General officers; pay of, 670; traveling and incidental 
expenses of, 680. 

General offices; pay of office force, 670; supplies and 
expenses, 680; traveling and incidental expenses 
of office force, 680; rents payable for, 680. 

Guys and guy stubs, repair charges for work on, xiv. 

Horses; investment in, 260; revenues from rent of 
teams, 520. 

Implements. (See Tools.) 

Inadequacy, depreciation charges due to, xvi. 

Income; definition of accounts, vi; annual closing 
of accounts, vi; accrued income balances not due, 
150; accrued income charges not due, 180; net in¬ 
come closed into surplus, 195; operating income, 
300,310; miscellaneous income, 320; charges against 
income, 330-380. 

Information operator, pay of, 650. 

Inspection cost included in cost of materials and 
supplies, ix. 

Installation of stations; costs charged to investment, 
230; revenue credits, 500; original cost charges to 
operating expense at removals, 620. 


Installments received on capital stock, liability for, 
160. 

Instruments; licensee revenue accruals for use, 530, 
540; removals and changes, 620. (See also Sta¬ 
tions, Telephone sets.) 

Insurance; fund assets, 140; prepayment balances, 
145; charges to investment, 270; charges to operat¬ 
ing expense, 680. 

Intangibles, investment charges for, 200. 

Interest; deposits to meet payments, 115; uncol¬ 
lected balances of interest receivable 130; unpaid 
balances of interest payable, 175; accrued balances 
of interest payable, 180; charges to investment, 
270; income credits for interest receivable and 
debits for collection expense, 320; income debits 
for interest payable, 360; interest disallowed on 
company securities owned, 360. 

Investment; accounts provided for, v; balances for 
100, 105, 110; plant and equipment accounts, 200- 
290. 

Jacks, repair charges for underlining, xiv. 

Jumper wires, repair charges for rerunning, xiv. 

Labor cost, definition of, ix. 

Land; not used in telephone operations, 105; other 
than right of way, 210; right of way, 240, 250; re¬ 
pair expense, 640. 

Law expense; assignable to investment, 270; assign¬ 
able to operating expense, 680. 

Leased property; rents from and maintenance ex¬ 
pense for plant leased to others, 320; rents payable 
for plant leased from others, 370; revenues from 
lines leased to brokers and others, 510. (See also 
Rents.) 

Licensee revenue; credits, 530; debits, 540. 

Lighting plants not used in telephone operations; 
investment, 105; revenues, 310; maintenance and 
operation, 340. 

Lines; investment in exchange lines, 240; invest¬ 
ment in toll lines, 250; revenue from extra mileage 
charges, 500; revenue from brokers’ and others’ 
leased lines, 510; repair expense, 600. (See also 
Pole line.) 

Local service revenue from exchanges, 500. 

Losses; miscellaneous losses not assignable to in¬ 
come, 195; net loss carried from income, 195; losses 
assignable to income, 370; loss of material at re¬ 
moval of stations, 620. 

Machinery, shop, investment in, 260. 

Maintenance; debits at property retirement, xiii, 
640; of plant leased to others, 320; of property not 
used in telephone operations, 340; of property 
used in telephone operations, 600-640. 

Manholes; investment, 240, 250; repair expense, 
600. 

Manufacturing plants; investment, 105; revenues, 
310; maintenance and operation, 340. 

Materials and supplies; definition of cost, ix; inclu¬ 
sion in cost of repairs, xv; asset balances, 135; ac¬ 
counting for, 135, 135 note; profits from sales, 520. 
(See also Salvage.) 

Message sendee; exchange revenues, 500; toll reve¬ 
nues, 510. 

Messengers; messenger service revenue, 520; pay 
and expenses, 660. 



31 


Mileage; charges for subscribers’ extra mileage, 500; 
mileage payments from other companies, 510. 

Miscellaneous charges to income, 370. 

Miscellaneous income, 320. 

Miscellaneous revenues, 520. 

Mortgages; asset balances for mortgages owned, 11C; 
interest receivable on, 130, 320; mortgage liabil¬ 
ity, 165; interest payable on, 360. 

Notes; asset balances for notes owned, 110, 120; 
note liability, 165, 170; interest receivable on, 320; 
interest payable on, 360. 

Obsolescence, depreciation due to, xvi. 

Officers; pay, 670; traveling and incidental ex¬ 
penses, 680. 

Offices; furniture and fixtures investment, 260; 
revenue from rents of, 520; furniture and fixtures 
repairs, 640; supplies and expenses, 680; rents 
payable for, 680. (See also Central offices.) 

Operating expenses; allocation of items to exchange 
and toll service, iii; definition, viii; transfer of 
totals to income, viii; charges prepaid, 145; 
charges representing accrued liability, 180; 
charges for minor articles of plant and equipment, 
general note (p. 21); income debits for expenses, 
330, 340; maintenance expense, 600-640; traffic 
expense, 650, 660; general expense, 670, 680. 

Operating revenues; allocation of items to exchange 
and toll service, iii; definition, vii; transfer of 
totals to income, vii; due from agents and others, 
125; income credits for revenues, 300, 310; mes¬ 
sage revenue, 500, 510; miscellaneous revenue, 
520; licensee revenue, 530,540. 

Operating room equipment; investment, 220; re¬ 
pair expense, 610. 

Operators’ wages, 650. 

Organization expense included in investment, 200. 

Other property; asset balances, 105; revenues from, 
310; expenses for, 340. 

Overcharge corrections, 500,510. 


Pole line; reconstruction costs, xii; rent receivable 
for leased portions, 320; rent payable for leased 
portions, 370. (See also Lines.) 

Poles; repair charges for straightening, xiv; invest¬ 
ment, 240, 250; rents receivable from attach¬ 
ments, 500, 510; repair expense, 600; rents paya¬ 
ble for attachments, 680. 

Postage included in general operating expense, 680. 

Power plant (not for telephone operation); invest¬ 
ment, 105; revenues, 310; maintenance and opera¬ 
tion, 340. 

Power plant (telephone operation); power appara¬ 
tus investment, 220; power apparatus repairs, 
610; cost of power purchased, 660; cost of power 
plant operation, 660. 

Preferred stock liability, 160. 

Premium on securities sold, liability for, 190. 

Prepayments; asset balances, 145; tax charges and 
credits, 350. 

Printing included in general operating expense, 680. 

Private branch exchanges; investment, 230; reve¬ 
nue from rentals, 500; repair expense, 610. 

Privileges, taxes on, 350. 

Profit and loss. (See Surplus account.) 

Property. (See Other property, Plant and equip¬ 
ment.) 

Proprietor’s account in balance sheet, 160 note, 195 
note. 

Purchased plant and equipment, 280. 

Purchased power, cost of, 660. 

Racks, relay and coil; investment, 220; repair ex¬ 
pense, 610. 

Rearrangement of plant, repair charges for, xiv. 

Reassociation of party lines, repair charges for, xiv. 

Receivers’ certificates, liability for, 165. 

Reconstruction; definition and accounting, xii; 
charges against depreciation reserve, xvi, 185; 
special funds, xvi. 

Refunds; of exchange revenues, 500; of toll reve¬ 
nues, 510. 

Relay racks; investment, 220; repair expense, 610. 

Relocation of plant; inclusion in repair expense, 
xiv; changes of stations, 620. 

Rentals from exchange service, 500. 

Rents (payable); asset balances of prepayments, 145; 
unpaid accrual balances, 180; for plant leased 
from others, 370; included in operating expense, 
680. 

Rents (receivable); from plant leased to others, 320; 
from pole attachments, 500, 510; from exchange 
property, 500; from toll property, 510; from offi¬ 
ces, storerooms, teams, etc., 520. 

Repairs; extraordinary repairs classed as recon¬ 
struction, xii; accounting for current repairs, 
xiv; definition of repair costs, xv; wire plant 
repairs, 600; equipment repairs, 610; repairs of 
land, buildings, and general equipment, 640. 

Replacements; of major or important portions of 
property, xii; of minor parts, xiv. 

Reserve funds; reconstruction funds unrequired, 
xvi; fund assets, 140. 

Reserves; charges to depreciation reserve at recon¬ 
struction, xii; charges to depreciation reserve at 
retirements, xiii; depreciation reserve liability 
xvi, 185; reserve liability other than for deprecia¬ 
tion, 190. 


Patents; costs charged to investment, 200; revenue 
debits and credits for use by licensees, 530, 540. 

Pay; of operating officers and employees assigned 
to construction, ix; inclusion in cost of repairs, 
xv; of central office and pay station operators 
650; of general and other officers and employees, 
670. 

Pay stations; revenue from, 500; pay of operators, 
650; other traffic expenses, 660; commissions in 
connection with, 680. 

Personal expenses; inclusion in investment cost of 
labor, ix; inclusion in cost of repairs, xv; assign¬ 
able to general operating expense, 680. 

Plant and equipment; allocation of items to ex¬ 
change and toll service, iii; definition of accounts, 
v; definitions of plant and equipment costs, ix; 
accounting for property in service Jan. 1,1915, x, 
290; charges for new property, xi; accounting for 
reconstruction, xii; accounting for retirements, 
xiii; asset balances, 100; exclusion of minor prop¬ 
erty items, general note (p. 21); distributed ex¬ 
penditures, 200-260; undistributed expenditures, 
270; clearing accounts, 280, 290; depreciation 
charges, 630. 



Retired property; cost of removal for reconstruc¬ 
tion, xii; accounting for retirement, xiii; cost of 
removal for repairs, xiv; charges to depreciation 
reserve, 185; charges to operating expense, 640. 

Revenues. (See Operating revenues.) 

Right of way investment; for exchange lines, 240; 
for toll lines, 250. 

Rural service, revenue from, 500. 

Salaries. (See Pay.) 

Salvage; recovery cost at reconstruction, xii; debits 
to materials and supplies at reconstruction, xii; 
debits to materials and supplies at retirements, 
xiii, 135; recovery cost at repairing, xiv; salvage 
deduction from cost of repairs, xv. 

Securities owned; asset balances for securities 
owned, 110; interest receivable on, 130; asset 
balances for securities in special funds, 140; in¬ 
come from securities owned, 320; interest dis¬ 
allowed on company securities owned, 360; divi¬ 
dends disallowed on company stock owned, 380. 

Service billed in advance, liability for, 190. 

Shop machinery, investment in, 260. 

Sinking funds. (See Reserve funds.) 

Special deposits, cash balances in, 115. 

Special funds; depreciation fund unrequired, xvi; 
fund assets, 140. 

Stationery included in general operating expense, 
680. 

Stations; investment in station equipment, 230; 
exchange revenue from, 500; repair expense, 610; 
removals and changes, 620. (See also Instru¬ 
ments, Telephone sets.) 

Stocks; asset balances for stocks owned, 110; stock 
discount balances, 150; capital stock liability, 160; 
stock premium balances, 190; dividends receiv¬ 
able on, 320; dividends payable on, 380. 

Storerooms, revenue from rent of, 520. 

Storm damage, reconstruction charges to cover, xii; 
depreciation charges for, xvi. 

Subscribers; balances due from, 125; liability for 
deposits of, 190; investment in subscribers’ sta¬ 
tion equipment, 230; revenue from rentals and 
charges paid by, 500; repairs to subscribers’ sta¬ 
tion equipment, 610. 

Superintendents of repair gangs, pay of, xv. 

Supervision; inclusion in operating expenses, viii; 
inclusion in cost of repairs, xv; services covered by 
licensee agreements, 530, 540; pay of supervisor 
operators, 650. 

Supplies; for power plant operation, 660; for offices, 
680. (See also Materials and supplies.) 

Surplus account, balances in, 195. 


Switchboards; investment, 220; repair expense, 610; 
wages of operators, 650. 

Switching revenues; exchange switching for farmer 
lines, 500; switching of toll messages, 510. 

Taxes; asset balances of prepayments, 145; unpaid 
accrual balances, 180; taxes assignable to invest¬ 
ment, 270; on property not used in telephone 
operations, 340; on telephone property, opera¬ 
tions, and privileges, 350. 

Teams, revenue from rent of, 520. 

Telegraph companies; rents from lines leased to, 
510; charges for collections made for, 520. 

Telephone sets; investment in central office sets, 
220; investment in station sets, 230; repair ex¬ 
pense, 610. (See also Instruments, Stations.) 

Terminal room equipment; investment, 220; repair 
expense, 610. 

Testing for troubles, repair charges for, xiv. 

Toll lines; investment, 250, 250 note; rents from 
lease of, 510; repair expense, 600. 

Toll systems; allocation of items to, iii; definition 
of, iii; revenue from, 510. 

Tools; investment, 260; repair expense, 640. 

Traffic expense, 650, 660. 

Transportation costs; inclusion in cost of materials 
and supplies, ix, 135; inclusion in cost of repairs, 
xv. 

Traveling expenses of general officers and em¬ 
ployees, 680. 

Tree trimming, repair charges for, xiv. 

Troubles, repair charges for correcting, xiv. 

Uncollectible bills, income charges for, 370. 

Undistributed construction expenditures, 270. 

Vouchers audited, liability balances for, 175. 

Wages. (See Pay.) 

Wagons; investment, 260; repair expense, 640. 

Water plants not used in telephone operations; in¬ 
vestment, 105; revenues, 310; maintenance and 
operation, 340. 

Wear and tear, depreciation charges for, xvi. 

Wire plant; reconstruction costs for, xii; exchange 
plant investment, 240; toll plant investment, 250; 
repair expense, 600. 

Wires; repair charges for correcting troubles, xiv; 
repair charges for rearranging, xiv; interior wiring 
investment, 220, 230; outside wiring investment, 
240, 250; repair of outside wiring, 600; repair of 
interior wiring, 610; interior wire abandoned in 
removals, 620. 

I Working fund asset balances, 130. 



APPENDIX. 


BOOKKEEPING SYSTEM. 

Suggested for Small Telephone Companies. 

The bookkeeping system here described is suggested for the use of small telephone 
companies. It is offered as an aid in the keeping of a set of books that will meet the 
accounting needs of such companies, and that, in the case of those companies subject 
to the jurisdiction of the Interstate Commerce Commission, will comply with the 
requirements contained in the Uniform System of Accounts prescribed for them by 
the Commission. The use of this bookkeeping system, in whole or in part, is not 
obligatory, and companies may adopt, for the present, any other bookkeeping system 
desired by them if the one chosen will produce the results required by the System of 
Accounts. 

GENERAL INSTRUCTIONS. 

Double entry.—The double-entry method should be used in keeping the accounts 
of a company. The essential principle of double-entry bookkeeping is that for every 
debit there must be a corresponding credit. Care should be taken to distinguish 
between debits and credits representing assets and liabilities and those representing 
revenues and expenses. The former are called balance-sheet accounts, and, taken 
together, present a statement of the condition of a company’s business at any given 
time. The latter cover the operations of a company and at the end of the year are 
closed through the income accounts into balance-sheet account No. 195, “ Surplus.” 


ACCOUNTING FORMS. 


Record forms.—Printed forms of several kinds are suggested for use in keeping 
accounting records. The use of each form is explained separately under its proper 
head and model forms are given with certain entries thereon to indicate further their 
use. The full list of suggested forms is as follows: 


Form 1.—General ledger. 
Form 2.—Subscribers ledger. 
Form 3.—Cash-journal. 

Form 4.—Voucher record. 
Form 5.—Voucher. 

Form 6.—Sub voucher. 


Form 7.—Check. 

Form 8.—Subscriber’s bill. 
Form 9.—Daily work report. 
Form 10.—Payroll. 

Form 11.—Stock record. 


The copies of the recommended forms, as given herewith in reduced size, show the 
headings and arrangement of columns. Italic letters to indicate specific columns are 
inserted to permit reference thereto in the explanatory text, but these letters form 
no necessary part of the forms. 

The forms here described are considered necessary for proper accounting by small 
companies. It may be desirable to use additional forms or expand the forms here 
suggested, in order to provide additional information or to meet local conditions. 
It may be said also that the forms here suggested are intended merely for the account¬ 
ing needs of the companies, and that other forms will probably be needed to show 
location and kinds of plant, records of traffic conditions, employees’ records, and 
other statistical information. 

General ledger (Form 1).—The ledger is a general record in which items are assem¬ 
bled in the respective accounts to which they relate. It presents a summary of all 

( 33 ) 



34 


business transactions classified under appropriate heads. For each debit made to an 
account in the ledger a corresponding credit should be made to some other account, 
and for each credit entry a corresponding debit should be made. All entries made 
in the general ledger should come from the cash-journal. 

Ledger accounts should be provided for each of the balance-sheet accounts which may 
be applicable to the company’s business. Where the title and definition of a balance- 
sheet account clearly indicate that it is a summary of other ledger accounts it is not 
necessary that a distinct ledger account be provided for the summary. For example, 
account No. 100, “Plant and equipment,” is a summary of accounts Nos. 200 to 290, 
inclusive; therefore, since ledger accounts are provided for accounts Nos. 200 to 290, 
it is not necessary to provide on the books an account for No. 100. Ledger accounts 
should be similarly provided for each of the plant and equipment, income, operating 
revenue, and operating expense accounts in so far as the business requires. 

Subscribers ledger (Form 2).—The subscribers ledger is a book of original entry. 
It should contain a complete record of all revenues accruing from subscribers and 
other patrons for services, as well as a record of collections made. 

When a telephone is installed the information called for by columns a to e and column 
g should be entered immediately. The revenue due for each month should be entered 
monthly in columns i to Jc and the total extended to column l. At the end of the 
month the columns i to l should be footed and an entry should be made in the cash- 
journal to cover (see entry No. 2) the totals of columns i,j, and k. As the collections 
are made they should be posted in columns m and n. The total of such collections 
for each day, or for the period for which settlements are made with collectors, should 
be covered by an entry in the cash-journal (3ee entry No. 3). 

If any allowances are made on account of failures in service, or for any other lawful 
reasons, the amount allowed in each case should be entered in column o, “Allow¬ 
ances.” The total of such allowances for each month should be charged by entry 
in the cash-journal to the revenue account (No. 500, 510, or 520) to which they relate 
and credited to account No. 125, “Due from subscribers and agents.” (See entry 
No. 4.) 

When service is paid for in advance the full amount of the payment should be entered 
in column n, “Paid—Amount,” and the balance applicable to future months should be 
carried forward in red ink to the next succeeding month in column p, “Balance due.” 
If this balance, as brought forward, is more than enough to cover the month’s bill, a 
red-ink entry should be made of the amount due subscriber in column l, “Total due,” 
and a like amount carried to column p of the next month and so on until the pre¬ 
payment is exhausted. (See fifth item on Form 2.) 

Great care should be exercised in ^posting the subscribers ledger, and the totals 
should be drawn off each month and proved. This may be done by taking off the 
totals as follows: 

Debit balance at beginning of month (black-ink entries in column h ) 

Exchange (column i) . 

Tolls (column t f). 

Miscellaneous (column k) . 

Total. 57. 75 

Less: 

Credit balance at beginning of month (total of red-ink entries 

in column h ). $7.00 

Amount paid (column n) . 32.45 

Allowances (column o). 3.25 


$26. 75 
24.00 
6.00 
1.00 


Total. 42. 70 

Difference. 15. 05 














35 


The difference should equal the difference between the total debits and total credits 
carried forward in column p for the next month. 

The form of subscribers ledger is designed for companies assessing and collecting 
revenues monthly. If revenues are assessed quarterly or by any period other than 
monthly the ledger may be prepared to fit the particular case. 

Cash-journal (Form 3).—The cash-journal is a combination of the cash book and the 
journal and in it are recorded all the transactions which are later posted to the general 
ledger. 

The first three columns (a, b, and c) are intended for debits and the last three col¬ 
umns ( d , e, and/) are intended for credits. Following the principle of double-entry 
bookkeeping, for each debit entered in any one or all of the first three columns there 
should be an equal credit entry in any one or all of the last three columns. 

In column a, “Cash,” should be entered the amount of all cash received. This may 
be done for each item of cash received, or, if a proper supplementary record is kept, 
it may be posted by totals. For example, if the collections as received are posted in 
the subscribers ledger, the collections for the day, or other period for which settlement 
is made with collector, may be posted in one entry in the cash-journal. 

In column 6, “Accounts payable,” should be entered the amounts of checks issued 
in payment of vouchers, a corresponding credit entry being made in column /, “Cash.” 
Such items may be entered individually or by days or other periods. 

In column c, “Sundries,” should be entered all other debits. This will include 
the debit side of adjusting entries, and other entries not covered by cash or vouchers, 
such as depreciation charges, accruals of taxes, accruals of interest, etc. 

The column marked >/ is the posting column. In it should be entered the number 
of the page in the general ledger in which the item is posted, or a check mark should 
be made to show that nothing has been omitted, as in the case of posting from totals 
of columns a, b, e, and/. In column headed “Particulars” should be entered suffi¬ 
cient detail to explain fully every transaction. 

In column d, “Sundries.” should be entered all credits excepting those provided for 
by columns e and /. In the usual cases these entries will be the corresponding credits 
for the debits entered in column c. 

In column e , “Due from subscribers and agents,” should be entered all amounts 
collected on accounts carried in the subscribers ledger (Form 2), corresponding debits 
being entered in column a, “Cash.” These items may be entered individually, but 
it is preferable that they be entered daily or for some other period. For the purpose 
of accounting for the collections by days or other periods, stubs to the subscribers’ bills 
or daily or periodical statements of collections may be used. 

The items in columns c and d, “Sundries,” should be posted individually to the 
debit or credit of the general ledger accounts affected. They may be posted from 
time to time during the month, or at the end of the month. 

The totals of columns a and / should be posted monthly to the debit and credit 
sides, respectively, of general ledger account No. 115, “Cash.” The total of column 
b, “Accounts payable,” should be debited monthly to general ledger account No. 175, 
“Accounts payable.” The total of column e, “Due from subscribers and agents,” 
should be credited monthly to general ledger account No. 125, “Due from sub¬ 
scribers and agents.” 

The entries in the cash-journal are to be made daily in the order in which they occur. 
The cash-journal is to be footed and closed out at the end of each month and started 
anew at the beginning of the next month. 

If the books have not heretofore been kept by the double-entry system and if a more 
correctrecord is not at hand an appraisal should be made of all the assets and liabilities, 
including the plant and equipment. A statement based on the assets and liabilities 
should be prepared from such appraisals or records obtainable and the difference 
between the total assets and the total liabilities should be carried to account No. 195, 


36 


“Surplus.” An opening entry should be made in the cash-journal based on such 
statement. Entry No. 1 on the cash-journal is given as an example of such an entry. 

Voucher record (Form 4).—The voucher record is designed for the keeping of a com¬ 
plete record of all obligations incurred and of disbursements made, without the keeping 
of a separate ledger account with each creditor. It also provides an easy method of 
making charges to the accounts affected. 

All vouchers should be entered on the voucher record in numerical order in the 
month in which the voucher is made, regardless of whether it is the intention to pay 
them during the month or at a later date. 

The total amount of the voucher should be included in column “Amount of voucher ” 
and distributed over the various columns according to the headings of the columns. 
Separate columns are provided for the operating expense accounts, the plant and 
equipment accounts, and other accounts which may be used frequently. A mis¬ 
cellaneous column is provided for entries to accounts which are not often used. 
The voucher record should be footed monthly and an entry should be made in the 
cash-journal (see entry No. 5). 

As checks are issued in payment of vouchers they should be entered in the voucher 
record in the column “Paid. ” As the total of vouchers issued will be posted through 
the cash-journal to the credit of account No. 175, “Accounts payable,” and as the 
total of the checks issued are debited to the same account, the balance in this account 
in the general ledger should show, when the postings are made, the amount of vouch¬ 
ers unpaid. A possible exception to the foregoing may be the amounts carried to 
account No. 175 when the books of the company are opened, for which amounts no 
vouchers may have been issued (see entry No. 1 on Form 3). 

Voucher (Form 5).—Vouchers should be made to cover all expenditures of moneys. 
They should be prepared as soon as purchases are made or expenses are incurred. The 
voucher should show all the information called for on the form. In the column 
headed “Particulars” should be entered sufficient detail to explain fully the purpose 
for which the voucher is issued, excepting that where the original invoice, bill, or 
other supporting papers give the full information, the explanation on the voucher 
may be given briefly. On the back of the form, in the space provided for “ Distribu¬ 
tion,” the amount of the voucher should be distributed over the accounts affected, 
in accordance with the System of Accounts. The printed form shows the accounts 
frequently used and has blank spaces for filling in with titles of other accounts. 

The vouchers should be numbered consecutively, commencing with No. 1 each 
year, and should be filed in numerical order. The invoices, subvouchers, payrolls, 
etc., supporting the vouchers should be securely attached to and filed with the vouch¬ 
ers. Each voucher should have attached to it the papers supporting it or should 
have full information thereon. 

It is not necessary that a separate voucher be made for each invoice, etc. If pay¬ 
ment covering several invoices, etc., is to be made to a single person or company, the 
amounts may be combined on one voucher. 

Subvoucher (Form 6).—This form is provided for taking receipts for moneys paid out 
in advance of the issuance of the regular voucher. It should be used to record amounts 
paid by foremen and workmen for meals, team hire, purchase of minor materials and 
supplies; for amounts paid out by exchange managers, cashiers, et al., from petty cash 
funds; and like expenditures. 

The subvouchers should be accumulated each month and vouchers (Form 5) to 
cover should be issued in favor of the manager, cashier, foreman, or other employee 
who paid out the moneys. The subvouchers should be attached to the vouchers 
as evidence of the purposes for which the moneys have been expended. 

Check (Form 7).—The check is in the form of the usual commercial bank check. A 
special form may be adopted but the usual form of check will answer the purpose. 


37 


The vouchers are issued and put through the books as soon as any bill or expense 
accrues. Checks should be issued as the vouchers are paid. A separate check may 
be issued for each voucher or, when two or more vouchers are issued for the same 
person, one check may be issued for the total amount of the vouchers. If employees 
are paid by check, the requisite number of checks may be issued for the one voucher 
covering the payroll. 

An entry covering the checks issued should be made in the cash-journal, charging 
account No. 175, “Accounts payable,” and crediting account No. 115, “Cash.” Sep¬ 
arate entries maybe made for each check, or entries maybe made for the totals by days 
or other periods. (See entry No. 6 on Form 3.) 

Subscriber’s bill (Form 8).—This is a form of bill to be made to subscribers show¬ 
ing charges for exchange, toll, and other services. The subscribers ledger should be 
first posted and the bills prepared from the subscribers ledger. 

The toll charges should be listed on the back of the bill and the total transferred to 
the space provided on the face of the bill. Messenger service, telegrams, and other 
charges maybe included on the blank line on face of the bill. If desired, separate 
bills may be provided for exchange and for toll service. 

The bill may be provided with a stub to be detached when bill is paid and ased for 
posting, or posting may be made from the collector’s or cashier’s reports of collections. 

Daily work report (Form 9).—In order to distribute properly the pay of employees 
which is chargeable to various accounts and to account properly for materials and 
supplies used, it is necessary to keep a record of the time devoted to and the mate¬ 
rials and supplies used on particular jobs. This is especially desirable when an 
employee devotes part of his time to construction, the cost of which is chargeable 
to Plant and Equipment, and part to repair work, which is chargeable to Operating 
Expenses. Form 9 may be used by a small company employing one man to do 
practically all the work, or, if desirable, in such cases the time may be distributed 
on an estimated basis. The daily work reports may be used as a basis for prepar¬ 
ing the payrolls and for distributing the pay of employees on the vouchers cover¬ 
ing the payrolls. (See payroll, Form 10.) 

The materials and supplies shown on the work reports should be tabulated at the 
end of each month and an entry made in the cash-journal crediting account No. 135, 
“Materials and supplies,” and charging the accounts benefited. (See entry No. 7 
on Form 3.) 

Payroll (Form 10).—The payroll is provided for recording the salaries and wages of 
all employees, however employed. This form of payroll is provided for companies 
making payments semimonthly. In case payments are made by other periods the 
form should be amended to suit the conditions. Vouchers should be prepared to 
cover the total of the payrolls for each period, and the expense should be distributed 
to the various accounts on the voucher. The distribution may be made direct from 
the payroll when practicable, but if the employee’s time is split up among various 
classes of work it will be necessary to prepare the distribution from the daily work 
reports (Form 9), 

If payment is made by check, separate checks should be issued for each employee. 
If payment is made in cash, the voucher can be drawn in favor of the paymaster or 
cashier and one check issued in his favor for the entire amount. (See voucher No. 4 
on Form 4.) 

The employee’s receipt for pay may be obtained on the payroll in space provided 
for that purpose or a separate receipt from each employee may be taken on a sub¬ 
voucher (Form 6). If the latter plan is adopted, the subvouchers should be filed 
with the payroll and voucher. 

Stock record (Form 11).—This form is designed to keep a record of materials and 
supplies on hand, by quantities and values. A separate record should be kept for 
each commodity. 


38 


When purchases are made they should be recorded under “Received ” and the unit 
cost of each item should be extended in column “Unit cost.” When materials and 
supplies are recovered from plant and returned to stock they should be also entered 
under “Received” and the value thereof should be shown under “Cost” and “Unit 
cost. ’’ In column ‘ ‘ Reference ” should be shown the number of the voucher covering 
the purchase or the record covering the materials and supplies returned to stock. 

At the end of each month the materials and supplies used during the month, as 
shown on the daily work report (Form 9), should be summarized and values based on 
the unit cost should be assessed for each commodity. The total of each commodity 
by quantities and value should be entered on Form 11 under “ Issued.” There should 
also be entered thereunder the quantities and values of materials and supplies sold 
or disposed of otherwise. 

As the total cost of materials and supplies purchased and those returned to stores 
is charged to account No. 135, “Materials and supplies,” and the total value of mate¬ 
rials and supplies used or otherwise disposed of is credited to account No. 135, the 
balance in account No. 135 should equal the value of the various materials and sup¬ 
plies on hand as shown by the stock record. 

EXPLANATION OF AND EXAMPLES SHOWING THE TREATMENT OF 
CERTAIN MATTERS IN THE BOOKS OF THE COMPANY. 

Depreciation.—Assuming that the ledger value of plant and equipment is $60,000, 
and that a rate of depreciation of 8 per cent per annum is determined,upon, the annual 
charge for depreciation would be $4,800, and the monthly charge one-twelfth or $400. 
The following entry should be made monthly on the cash-journal: 


630. Depreciation of plant and equipment. $400 

To 185. Depreciation reserve. 400 


For one-twelfth of estimated depreciation on plant and equip¬ 
ment at 8 per cent per annum. 

The amounts credited to account No. 185, “Depreciation reserve” should remain in 
that account until charged out for reconstruction or for retirements of plant and 
equipment. 

Reconstruction.—When reconstruction as defined in section 12, page 11, of the 
System of Accounts is performed, the cost thereof should be charged to account No. 
185, “Depreciation reserve,” to the extent that provision shall have been made for 
such expense in previous credits to the reserve. 

For example, if an exchange pole line is reconstructed at a cost of $750, with salvage 
recovered amounting to $50, the cost of reconstruction should be charged as follows: 


185. Depreciation reserve. $700 

135. Materials and supplies. 50 


The charge to the reserve is based on the assumption that depreciation has been set 
up on the pole line since it was originally installed. 

If, however, the depreciation has not been provided for during the entire life of the 
pole line and it is estimated that the reserve contains $300 on account of that property, 
the expense should be distributed as follows: 


185. Depreciation reserve. $300 

600. Repairs of wire plant. 400 

135. Materials and supplies. 50 


If reconstruction shall not have been provided for by credits to the reserve the 
entire cost should be charged to the appropriate operating expense account. 

Retirements of plant and equipment.—Assuming that a switchboard originally 
installed at a cost of $1,000 is retired from service, that the old switchboard is sold for 









39 


$150, and that the cost of removing the switchboard is $20, the entry in the cash-journal 


should be as follows: 

185. Depreciation reserve. $850 

130. Accounts receivable (or Cash). 150 

To 220. Central office equipment. $1,000 


For switchboard in Rockville central office retired. 

A voucher should be issued covering the cost of removing ($20) and charged to 
account No. 185, “Depreciation reserve.” The above charges to the reserve are 
based on the assumption that depreciation shall have been set up on the switchboard 
since it was originally installed. 

If, however, the depreciation has not been provided for during the entire life of the 
switchboard and it is estimated that the reserve contains $340 on account of that prop¬ 
erty, the cash-journal entry should be as follows: 


185. Depreciation reserve. $340 

640. Other maintenance expenses. 510 

130. Accounts receivable. 150 

To 220. Central office equipment. $1,000 


The voucher covering the cost of removing ($20) should be charged to account No. 
640, “ Other maintenance expenses.” 

Accruals of taxes, interest, rents, etc.—One of the principal purposes of correct ac¬ 
counting is to spread equitably over a period of time the expenses properly applicable 
to the whole period, instead of showing the entire amount of the expense in the month 
or year in which it is paid. This is especially desirable where the accounts are closed 
each month. In order to take care of such expenses, it is necessary to charge to Oper¬ 
ating Expenses each month the proper proportion (estimated, if not known) of such 
expense, and to carry a corresponding amount in a balance-sheet account until the 
payment is made. Assuming that the taxes for the year are estimated as $100, an 
entry should be made in the cash-journal monthly as follows: 


350. Taxes. $8.33 

To 180. Accrued liabilities not due. $8. 33 


To one-twelfth of estimated taxes for the year. 

When the taxes are paid, a voucher should be issued and charge should be made to 
account No. 180, “Accrued liabilities not due.” (See voucher No. 5 on Form 4.) 

Prepayments.—When payment of expense is made in advance of the period to which 
it applies, it is necessary that arrangement be made for charging in each month or period 
the proper proportion. For instance, if an insurance premium amounting to $240 
is paid on a policy running two years into the future, the payment should be treated 
in the manner following: 

When the premium is paid, a voucher should be issued and the whole amount charged 
to account No. 145, “Prepayments” (see voucher No. 6 on Form 4). Each month an 
entry should be made in the cash-journal as follows: 


680. Other general expenses. $10 

145. To Prepayments. $10 


For insurance for month of January, 1915. 

At the end of the period the entire amount charged to account No. 145, “Prepay¬ 
ments,” under this method will have been credited to that account and charged to the 
operating expense accounts. 

Petty cash fund.—It may be necessary at times to make immediate cash payments 
for sundry accounts prior to the issuance of the regular voucher and check. Such pay¬ 
ments may be handled through a petty cash fund. To create such a fund, voucher 
for whatever amount is considered sufficient should be made in favor of the cashier 













40 


or other person who is to make the payments. The amount of this voucher should be 
charged on the voucher record to account No. 130, “Accounts receivable ” (see voucher 
No. 7 on Form 4), and a subaccount should be opened in the name of the cashier. 
This account should stand at that amount until it becomes necessary to increase the 
amount, when an additional voucher should be issued, or to decrease it, when an 
entry should be made in the cash-journal. 

As moneys are paid out by the cashier, receipts should be taken on sub voucher (Form 
6) and a voucher should be put through monthly to reimburse the cashier for money 
disbursed during the month. This method may be used also when funds are advanced 
to agents, foremen, and others. 

Telephone installations, take-outs, and moves.—It is important that the investment 
in plant and equipment as shown by accounts Nos. 200 to 290 be kept at the correct 
figures. The system of accounts contemplates that when new telephones are installed 
the cost of the instrument, etc., plus the cost of installation, shall be charged to 
account No. 230, “Station equipment.” When telephones are taken out, the cost of 
the instrument, plus the cost of original installation, shall be credited to account 
No. 230, “Station equipment”; and when telephones are moved from one location to 
another, the cost of moving shall be charged to account No. 620, “Station removals 
and changes.” This will insure the correctness of the plant and equipment accounts, 
which should include the cost of the telephones in use. When telephones are taken 
out it may be difficult to ascertain the original installation cost. This cost may be 
handled on averages, and a simple method of treatment is as follows: 

Charge or credit account No. 230, “Station equipment,” and credit or charge 
account No. 135, “Materials and supplies,” with the value of all instruments installed 
or removed (not merely changed in location). Charge account No. 620, “Station 
removals and changes,” with the cost of all installations and take-outs (not including 
value of instruments), and cost of all moves in location. 

At the end of the year make an entry in the cash-journal, charging account No. 230, 
‘ * Station equipment, ’ ’ and crediting account No. 620, ‘ ‘ Station removals and changes, ’ ’ 
with such portion of the amount charged to account No. 620 during the year as the 
increase in the number of telephones in service at the end of year bears to the total 
number of installations, take-outs, and moves during the year. 

For example, if during the year there were 200 new telephones installed, 50 taken 
out, and 100 moved at a total expense of $1,125, there would be, by counting the 
moves as two operations— 

Installations. 200 operations. 

Take-outs. 50 operations. 

Moves. 200 operations. 

Total. 450 operations. 

The net increase in the number of telephones in use being 150, which is one-third of 
the total operations, one-third of the total expense, or $375, should be charged to 

account No. 230 and credited to account No. 620 by an entry in the cash-journal at 

the end of the year. The method may be used only when the number of telephones 
in use increases from one year to the next. 






Form 1.—General Ledger. 


Account No. . 

Debit. 








Cbedit. 

Date. 

Folio. 

Amount. 

Date. 


Folio. 

Amount. 












Form 2. — Subscribers Ledger (left page). 


HOME TELEPHONE COMPANY. 

SUBSCRIBERS LEDGER. 

Account 
(or tele¬ 
phone) 
number. 

Name of subscriber. 

Address. 

Service. 

Date 

installed. 

Date 

removed. 

Rate 

per 

month. 

January. 

February. 

Bal. due. 

Exch. 

Toll. 

Miscl. 

Total 

due. 

Paid. 

Allow¬ 

ances. 

Bal. due. 

Exch. 

Toll. 

Miscl. 

Total 

due. 

Paid. 

Allow¬ 

ances. 

Date. 

Amount. 

Date. 

Amount. 

(o) 

( 6 ) 

(0 

(d) 

(0 

(/) 

(?) 

(A) 

(0 

(?) 

(*) 

(0 

(to) 

In) 

(O) 

- -- 

(?) 

(7) 

(r) 

(*) 

(0 

(«) 

(D 

(w) 

316 






2.00 


2.00 



2.00 

1/12 

2.00 










4?*? 






2.50 

3.50 

2.50 

.50 


6.50 

1/4 

6.00 


.50 








537 






2.00 


2.00 



2.00 


2.00 









693 


‘ 

if 



2.00 


2.00 

.65 

. 10 




.75 

2.00 








7R2 



Bus. 



2.50 


2.50 

1.00 


* 1.50 




*1.50 








7 Q 3 



2 Pty. 

it 



1.75 

4.00 

1.75 

1.00 

.20 

6.95 

1 '25 

5.45 

.50 

1.00 








sra 






7.00 

1.75 

.50 


9.25 

1/6 

10.00 


*.75 








861 



Bus. 



2.50 

.25 

2.50 

2.00 

.60 




5.35 








945 



Res. 



2.00 

* 2. 00 

2.00 















960 



Bus. 



2.50 

9.00 

2.50 

.35 

. 10 

11.95 

1/15 

9.00 


2.95 








9S1 



it 



2.50 

3.00 

2.50 



5.50 



5.50 









Totals 






t19.75 

24.00 

6.00 

1.00 

150.75 


32.45 

3.25 

115.05 

1 








* Figures in italics indicate entry in red ink. 

f The totals of columns ft, l, and p are net amounts or differences between the total black ink entries and the total red ink entries in the respective columns. 

Note.— The above form is ruled for the left-hand page and covers the months January and February. The right-hand page (the reverse side of this) may be ruled to cover the months September to December, inclusive, and a short page, three months on each 
side, inserted to cover the months March to August, inclusive. This arrangement makes it possible to post a year’s business without rewriting the names of subscribers. 

35819°—14. (To face p. 40.) No. 1 












































































































































































































































Form 3. — Cash-Journal. 


Debits. 


HOME TELEPHONE COMPANY 

CASH-JOURNAL. 

Month of January, 1915. 


Credits. 


Cash. 


(<0 


:I2 


4.5 


Accounts 

payable. 


(b) 


Sundries. 


627 00 


(0 


18,000 

450 

300 

500 


31 


21 

20 

10 

5 

35 

75 

20 

25 

15 

20 

11 

50 

240 

100 


00 


20 

00 

15 

00 

10 

00 

15 

00 


Particulars. 


Jany 1. 


(Entry No. 1.) 


The Home Telephone Company opens these books with the fol¬ 
lowing assets and liabilities: 

Assets. 

290. Plant and equipment in service Jan’y 1, 1915. 

115. Cash. 

125. Due from subscribers and agents. 

135. Materials and supplies. 

Liabilities. 

160. Capital stock. 

170. Notes payable. 

175. Accounts payable. 

195. Surplus. 


(Date) 


(Entry No. 2.) 


125. Due from subscribers and agents. 

To 500. Exchange revenues. 

510. Toll revenues. 

520. Miscellaneous revenues. 

For revenues for month of Jan’y, 1915. 


(Date) 


(Entry No. 3.) 


115. Cash. 

To 125. Due from subscribers and agents. 
For collections of charges for Jany, 1915. 


Sundries. 


(d) 


(Date) 


(Entry No. 4.) 


500. Exchange revenues. 

510. Toll revenues. 

520. Miscellaneous revenues. 

To 125. Due from subscribers and agents. 
For refunds on acct. of failures in service. 


(Date) 


(Entry No. 5.) 


600. Repairs of wire plant. 

610. Repairs of equipment. 

620. Station removals and changes. 

640. Other maint. expenses. 

650. Operators’ wages. 

670. General office salaries. 

680. Other general expenses. 

135. Materials and supplies. 

220. Central office equipment. 

230. Station equipment. 

240. Exchange lines. 

130. Accounts receivable. 

145. Prepaymenls. 

180. Accrued liabilities not due. 

To 175. Accounts payable. 

For vouchers for month of Jan’y, 1915. 


(Date) 


(Entry No. 6.) 


i75. Accounts payable. 

To 115. Cash. , , 

For cash paid out Jany. 1 to Jany. 15 mcl., as per cheek stubs. 


(Date) 


(Entry No. 7.) 


230. Station equipment. 

240. Exchange lines. 

600. Repairs of wire plant. 

610. Repairs of equipment. 

To 135. Materials and supplies. 

For material used from stock during month of January, 1915. 


16,000 

750 

400 

2,100 


Due from 
subscribers j 
and agents. 


Cash. 


(«) 


(/) 


647 


00 


60 


32 


45 


25 


00 


627 


00 


35819°—14. (To face p. 40.) No. 2 
























































































































; 

; 

.■ .. : •■-'.■■■ I : ■ ; 

* 












! 






*'■ . ’ ' 






* 

' . 
























' ‘ 

( . 

• * 


i 






■ 

r 










" • "1 






















































Form 4.—Voucher Record (left page). 


HOME TELEPHONE COMPANY 


I S3 I I I Paid. I! Operating expenses, 

g ' ,_Amount of [' _ 

r* I I , I TrmiOnor 


Date. 

O 

qj 

o 

> 

In favor of— 

Issued for— 

Date. 

Check 

No. 

voucher. 
Credit aect. 
175, Accounts j 
payable. 

600 

Repairs of 
wire plant. 

610 

Repairs of 
equipment. 

620 

Station re¬ 
movals and 
changes. 

630 

Deprecia¬ 
tion of 

P. and E. 

G40 

Other 

maint. 

expenses. 

650 

Operators’ 

wages. 

660 

Other 

traffic 

expenses. 

670 

General 

office 

salaries. 

680 

Other 

general 

expenses. 

Jan. 1 

i 

Smith Supply Co. 

Hardware, 

1/15 

100 

25.00 










1 

2 

George Brown. 

Rent of office. 



20.00 









20.00 

1 

3 

Edw. Fox. 

Hire of teams. 

1/15 

101 

12.00 

6.00 









15 

4 

W. T. Hall, cashier. 

Payroll for Jany 1 to 15, inc. 

1/15 

102 

2011.00 

15.00 

20.00 

10.00 


5.00 

35.00 


75.00 


15 

5 

A. T. Johnson. 

Taxes for year 1914. 

1/15 

103 

100.00 










15 

G 

Natl. Fire Ins. Co. 

Premium on insurance policy for 

1/15 

104 

240.00 













years 1915 and 1910. 













15 

7 

IV. T. Hall, cashier. 

For working fund. 

1/15 

105 

50.00 













Totals. * 



647.00 

21.00 

20.00 

10.00 


5.00 

35.00 

75.00 

20.00 


35819°—14. (To face p. 40.) No.J 


* See entry No. 5 in Form 3. 


Form 4. — Voucher Record (right page) 


VOUCHER RECORD. 


Month of January, 1915. 


Plant, and equipment. 

135 

Materials 

and 

supplies. 

185 

Deprecia¬ 

tion 

reserve. 



Miscellaneous. 


200 

Intangi¬ 

bles. 

210 

Land and 
buildings. 

220 

Central 

office 

equipment. 

230 

Station 

equipment. 

240 

Exchange 

lines. 

2.50 

Toll lines. 

200 

General 

equipment. 

270 

Undis¬ 
tributed 
con. expd. 

280 

P.and E. 
purchased. 

Aect. 
No. 

Account. 

Amount. 



15.00 

20.00 

6.00 

5.00 





25.00 

} 




180 

145 

130 

Accrued liabilities not due. 
Prepayments. 

Accounts receivable. 

100.00 

240.00 

50.00 




15.00 

20.00 11.00 

1 


25.00 




390.00 




































































































































Form 5.—Voucher (face) 


HOME TELEPHONE COMPANY. 

VOUCHER. Voucher No. 

In Favor of_ _ month of.191- 

AdDRESS _ _ Paid by Chec£ No. 

Date of Check. 191.. 


Date. 

Particulars. 

Amount. 









Correct: 

Approved for payment: 




Correct: 


35819°—14. tXo face p. 40.) No. 4 


Form 5. — Voucher (back). 


HOME TELEPHONE CO. 


Distribution —(continued) 

Voucher No. Month of.. 

...191. 


Account. 

Amount. 

IN FAVOR OF 



BALANCE SHEET ACCTS. 

105. Other property 

110. Securities 

135. Materials and supplies 








Amount. 

150. Other'debit accounts 

170. Notes payable 

ISO. Accrued liabilities not duo 

185. Depreciation reserve 



Distribution. 

190. Other credit accounts 



Account. 

Amount. 




OPERATING EXPENSES. 






600. Repairs of wire plant 

CIO. Repairs of equipment 

620. Station removals and changes 

630. Depreciation ol plant and equip. 
640. Other maint. expenses 

650. Operators’ wages 

660. Other traffic expenses 

670. General office salaries 

680. Other general expenses 



INCOME ACCOUNTS. 

310. Other operating revenues 

320. M iseellaneous income 

340. Other operating expenses 

350. Taxes 

360. Interest accrued 

370. Miscellaneous chgs. to income 

380. Dividends declared 



PLANT AND EQUIPMENT. 






200. Intangibles 

210. Land and buildings 

220. Central office equipment 

230. Station equipment 

240. Exchange lines 

250. Toll lines 

260. General equipment 

270. Undistributed const’n exp’dr’s 
280. Plant and equip, purchased 



OPERATING REVENUES. 

500. Exchange revenues 

510. Toll revenues 

520. Miscellaneous revenues 

530. Licensee revenues—Cr. 

540. Licensee revenues — Dr. 
















































































































Auditor, Manager or Foreman. 


Form 6.—Subvoucher. 




a 

a 



c 




o 

a 

<< 



t ; 

W 

O 

(X 

-< 

X 

o 



Total. 

fo 

o 




£ 

o 




X 

S 

ft 




75 




o 

■<* 




(Place) 


HOME TELEPHONE COMPANY. 


To 


., (Date) .. 191 

.Dr. 


Particulars. 


Total 


Amount. 


Received of the Home Telephone Company, 


Dollars, in full for above account 


(Date) 


(Signature) 


Form 7.—Check. 



No. 


(City) 


(State) 


(Date) . 191 .. 


FIRST NATIONAL BANK. 


Pay to the order of 


Dollars. 


For 


Countersigned by 


(Title.) 


Home Telephone Company. 


By 


(Title.) 


35819°—14. (To lace p. 40.) No. 5 


































































































.« 














i 

























41 


Form 8.—Subscriber’s bill (face). 


Account -vr 
Telephone • 


Mr. 


To Home Telephone Company, Dr. 


191 . 


Telephone rental for month of. 

Toll charges, as per statement on back. 


191. 


Balance due on former bills. 


Total 


Received payment, 
(Date)_ 191 


(back.) 


Toll charges for. 191 . 


Date. 

Message to 

Amount. 

. 


• 



Total. 





























































42 


Form 9.—Work Report. 


HOME TELEPHONE COMPANY. 

Daily Work Report. 



































HOME TELEPHONE COMPANY. 


43 


Form 10.—Payroll. 



* This column is to be used if employees are paid by individual check. 












































































































































